Chapter 293
2004 -- S 2749
SUBSTITUTE A AS AMENDED
Enacted 07/02/04
A N A C T
RELATING
TO WORKERS' COMPENSATION -- PROCEDURE
Introduced
By: Senator Roger R. Badeau
Date
Introduced: February 11, 2004
It is
enacted by the General Assembly as follows:
SECTION
1. Sections 28-29-2, 28-29-17 and 28-29-19 of the General Laws in Chapter
28-29
entitled "Workers' Compensation -- General Provisions" are hereby
amended to read as
follows:
28-29-2.
Definitions. -- In chapters 29 -- 38 of this title, unless the context
otherwise
requires:
(1) "Department" means the department of labor and training.
(2) "Director" means the director of labor and training or his or her
designee unless
specifically
stated otherwise.
(3) (i) "Earnings capacity" means the weekly straight time earnings
which an employee
could
receive if the employee accepted an actual offer of suitable alternative
employment.
Earnings
capacity can also be established by the court based on evidence of ability to
earn,
including,
but not limited to, a determination of the degree of functional impairment
and/or
disability,
that an employee is capable of employment. The court may, in its discretion,
take into
consideration
the performance of the employee's duty to actively seek employment in
scheduling
the
implementation of the reduction. The employer need not identify particular
employment
before
the court can direct an earnings capacity adjustment. In the event that an employee
returns
to
light duty employment while partially disabled, an earnings capacity shall not
be set based
upon
actual wages earned until the employee has successfully worked at light duty
for a period of
at
least thirteen (13) weeks.
(ii) As used under the provisions of this title, "functional
impairment" means an
anatomical
or functional abnormality existing after the date of maximum medical
improvement as
determined
by a medically or scientifically demonstrable finding and based upon the most
recent
edition
of the American Medical Association's Guide to the Evaluation of Permanent
Impairment
or
comparable publications of the American Medical Association.
(iii) In the event that an employee returns to employment at an average weekly wage
equal
to the employee's pre-injury earnings exclusive of overtime, the employee will
be presumed
to
have regained his/her earning capacity.
(4) "Employee" means any person who has entered into the employment
of or works
under
contract of service or apprenticeship with any employer, except that in the
case of a city or
town
other than the city of Providence it shall only mean that class or those
classes of employees
as
may be designated by a city, town, or regional school district in a manner
provided in this
chapter
to receive compensation under chapters 29 -- 38 of this title. Any person
employed by the
state
of Rhode Island, except for sworn employees of the Rhode Island State Police,
who is
otherwise
entitled to the benefits of chapter 45-19 shall be subject to the provisions of
chapters
29-38
of title 28 for all case management procedures and dispute resolution for all
benefits. It
does
not include any partner, general or limited, or any partner in a registered
limited liability
partnership,
or any nonmanager member of a limited liability company, sole proprietor,
independent
contractor, or a person whose employment is of a casual nature, and who is
employed
other than for the purpose of the employer's trade or business, or a person
whose
services
are voluntary or who performs charitable acts, nor shall it include the members
of the
regularly
organized fire and police departments of any town or city. Whenever a
contractor has
contracted
with the state, a city, town, or regional school district any person employed
by that
contractor
in work under contract shall not be deemed an employee of the state, city,
town, or
regional
school district as the case may be. Any person who on or after January 1, 1999,
was an
employee
and became a corporate officer shall remain an employee, for purposes of these
chapters,
unless and until coverage under this act is waived pursuant to subsection
28-29-8(b) or
section
28-29-17. Any person who is appointed a corporate officer between January 1,
1999 and
December
31, 2001, and was not previously an employee of the corporation, will not be
considered
an employee, for purposes of these chapters, unless that corporate officer has
filed a
notice
pursuant to section 28-29-19(b). In the case of a person whose services are
voluntary or
who
performs charitable acts, any benefit received, in the form of monetary
remuneration or
otherwise,
shall be reportable to the appropriate taxation authority but shall not be
deemed to be
wages
earned under contract of hire for purposes of qualifying for benefits under
chapters 29 --
38 of
this title. Any reference to an employee who had been injured shall, where the
employee is
dead,
include a reference to his or her dependents as defined in this section, or to
his or her legal
representatives,
or, where he or she is a minor or incompetent, to his or her conservator or
guardian.
A "seasonal occupation" means those occupations in which work is
performed on a
seasonal
basis of not more than sixteen (16) weeks.
(5) "Employer" includes any person, partnership, corporation, or
voluntary association,
and
the legal representative of a deceased employer; it includes the state, and the
city of
Providence.
It also includes each city, town, and regional school district in the state
that votes or
accepts
the provisions of chapters 29 -- 38 of this title in the manner provided in
this chapter.
(6) "General or special employer":
(i) "General employer" includes but is not limited to temporary help
companies and
employee
leasing companies and means a person who for consideration and as the regular
course
of
its business supplies an employee with or without vehicle to another person.
(ii) "Special employer" means a person who contracts for services
with a general
employer
for the use of an employee, a vehicle, or both.
(iii) Whenever there is a general employer and special employer wherein the
general
employer
supplies to the special employer an employee and the general employer pays or
is
obligated
to pay the wages or salaries of the supplied employee, then, notwithstanding
the fact
that
direction and control is in the special employer and not the general employer,
the general
employer,
if it is subject to the provisions of the Workers' Compensation Act or has
accepted that
Act,
shall be deemed to be the employer as set forth in subdivision (5) of this
section and both the
general
and special employer shall be the employer for purposes of sections 28-29-17
and 28-29-
18.
(iv) Effective January 1, 2003, whenever a general employer enters into a
contract or
arrangement
with a special employer to supply an employee or employees for work, the
special
employer
shall require written documentation evidencing that the general employer
carries
workers'
compensation insurance with no indebtedness for its employees for the term of
the
contract
or arrangement. In the event that the special employer fails to obtain the
written
documentation
from the general employer, the special employer is deemed to be the employer
pursuant
to the provisions of this section.
(7) (i) "Injury" means and refers to personal injury to an employee
arising out of and in
the
course of his or her employment, connected and referable to the employment.
(ii) An injury to an employee while voluntarily participating in a private,
group, or
employer-sponsored
carpool, vanpool, commuter bus service, or other rideshare program, having
as
its sole purpose the mass transportation of employees to and from work shall
not be deemed to
have
arisen out of and in the course of employment. Nothing in the foregoing
provision shall be
held
to deny benefits under chapters 29 -- 38 and chapter 47 of this title to
employees such as
drivers,
mechanics, and others who receive remuneration for their participation in the
rideshare
program.
Provided, that the foregoing provision shall not bar the right of an employee
to recover
against
an employer and/or driver for tortious misconduct.
(8) "Maximum medical improvement" means a point in time when any
medically
determinable
physical or mental impairment as a result of injury has become stable and when
no
further
treatment is reasonably expected to materially improve the condition. Neither
the need for
future
medical maintenance nor the possibility of improvement or deterioration
resulting from the
passage
of time and not from the ordinary course of the disabling condition, nor the
continuation
of a
pre-existing condition precludes a finding of maximum medical improvement. A
finding of
maximum
medical improvement by the workers' compensation court may be reviewed only
where
it is established that an employee's condition has substantially deteriorated
or improved.
(9) "Physician" means medical doctor, surgeon, dentist, licensed
psychologist,
chiropractor,
osteopath, podiatrist, or optometrist, as the case may be.
(10) "Suitable alternative employment" means employment or an actual
offer of
employment
which the employee is physically able to perform and will not exacerbate the
employee's
health condition and which bears a reasonable relationship to the employee's
qualifications,
background, education, and training. The employee's age alone shall not be
considered
in determining the suitableness of the alternative employment.
(11) "Independent contractor" means a person who has filed a notice
of designation as
independent
contractor with the director pursuant to section 28-29-17.1 or as otherwise
found by
the
workers' compensation court.
28-29-17.
Waiver of common law rights -- Notice of claim of common law right. --
An
employee or corporate officer of an employer or manager of a limited
liability company
subject
to or who has elected to become subject to the provisions of chapters 29 -- 38
of this title
as
provided in section 28-29-8 shall be held to have waived his or her right of
action at common
law
to recover damages for personal injuries if he or she has not given his or her
employer at the
time
of the contract of hire or appointment notice in writing that he or she claims
that right and
within
ten (10) days after that has filed a copy of the notice with the director, or,
if the contract of
hire
or appointment was made before the employer became subject to or elected to
become
subject
to the provisions of those chapters, if the employee or corporate officer or
manager of a
limited
liability company
shall not have given the notice and filed it with the director within ten
(10)
days after the filing by the employer who is subject to or who has elected to
become subject
to
the provisions of those chapters of the written statement as provided. That
waiver shall
continue
in force for the term of one year, and after that, without further act on his
or her part, for
successive
terms of one year each, unless the employee or corporate officer or manager
of a
limited
liability company,
at least sixty (60) days prior to the expiration of the first or any
succeeding
year files with the director a notice in writing to the effect that he or she
desires to
claim
his or her right of action at common law and within ten (10) days thereafter gives
notice of
this
to his or her employer.
28-29-19.
Waiver of claim of common law rights. -- (a) Any employee, or corporate
officer
or manager of a limited liability company, or the parent or guardian of
any minor
employee,
who has given notice to the employer that he or she claimed his or her right of
action
at
common law may waive that claim by filing a notice in writing with the director
and the
employer
or his or her agent which shall take effect five (5) days after the filing with
the director.
(b) Any person who is appointed a corporate officer between January 1, 1999 and
December
31, 2001 and was not previously an employee of the corporation may elect to
become
subject
to chapters 29 -- 38 of this title upon filing a notice in writing with the
director which
notice
takes effect five (5) days after the filing of his or her notice.
SECTION
2. Section 28-33-3 of the General Laws in Chapter 28-33 entitled "Workers'
Compensation
-- Benefits" is hereby repealed.
28-33-3.
Contingent attorneys' fees. -- Contingent fees of attorneys for
services under
chapters
29 -- 38 of this title shall be subject to the approval of the workers'
compensation court.
SECTION
3. Sections 28-33-17.3, 28-33-18.3, 28-33-25 and 28-33-25.1 of the General
Laws
in Chapter 28-33 entitled "Workers' Compensation -- Benefits" are
hereby amended to read
as
follows:
28-33-17.3.
Fraud and abuse. -- (a) (1) The workers' compensation court is
authorized
and
directed to impose sanctions and penalties necessary to maintain the integrity
of and to
maintain
the high standards of professional conduct in the workers' compensation system.
All
pleadings
related to proceedings under chapters 29 -- 38 of this title shall be
considered an
attestation
by counsel that valid grounds exist for the position taken and that the
pleading is not
interposed
for delay.
(2) If any judge determines that any proceedings have been brought, prosecuted,
or
defended
by an employer, insurer, or their counsel without reasonable grounds, then:
(i) The whole cost of the proceedings shall be assessed upon the employer,
insurer, or
counsel,
whoever is responsible; and
(ii) If a subsequent order requires that additional compensation be paid, a
penalty of
double
the amount of retroactive benefits ordered shall be paid to the employee and
the penalty
shall
not be included in any formula utilized to establish premium rates for workers'
compensation
insurance.
(3) If any judge determines that any proceedings have been brought or defended
by an
employee
or his or her counsel without reasonable grounds, the whole cost of the
proceedings
shall
be assessed against the employee or counsel, whoever is responsible.
(4) The court shall determine whether an action or defense is frivolous or
conduct giving
rise
to the action or defense was unreasonable. Where the amount at issue is less
than the actual
attorneys'
fees of the parties combined, the court shall exercise particular vigilance.
Nothing in
this
subsection, however, is intended to discourage prompt payment in full of all
amounts
required
to be paid.
(5) The appropriate body with professional disciplinary authority over the
attorney shall
be
notified of the action.
(b) (1) It is unlawful to do any of the following:
(i) Make or cause to be made any knowingly false or fraudulent material
statement or
material
representation for the purpose of obtaining or denying any compensation;
(ii) Present or cause to be presented any knowingly false or fraudulent written
or oral
material
statement in support of, or in opposition to, any claim for compensation or
petition
regarding
the continuation, termination, or modification of benefits;
(iii) Knowingly assist, aid and abet, solicit, or conspire with any person who
engages in
an
unlawful act under this section;
(iv) Make or cause to be made any knowingly false or fraudulent statements with
regard
to
entitlement to benefits with the intent to discourage an injured worker from claiming
benefits
or
pursuing a claim;
(v) Willfully misrepresent or fail to disclose any material fact in order to
obtain workers'
compensation
insurance at less than the proper rate for the insurance including, but not
limited to,
intentionally
misleading or failing to disclose information to an insurer regarding the
appropriate
rate
classification of an employee;
(vi) Willfully fail to provide a lower rate adjustment favorable to an employer
as
required
by an approved experience rating plan or regulations promulgated by the
insurance
commissioners;
(vii) Willfully fail to report or provide false or misleading information
regarding
ownership
changes as required by an approved experience rating plan or regulations
promulgated
by
the insurance commissioner; or
(viii) Knowingly assist, aid and abet, solicit or conspire to coerce an
employee to
willfully
misrepresent an employee's status as a president, one vice president, secretary
and/or
treasurer
of a corporation or as a member of a limited liability company or as a
partner in a
general
partnership, limited partnership or a limited liability partnership or as an independent
contractor
for the purpose of avoiding the inclusion of that or other employees in a
workers'
compensation
insurance application, renewal or both.
(2) For the purposes of this section, "Statement" includes, but is
not limited to, any
endorsement
of a benefit check, application for insurance coverage, oral or written
statement,
proof
of injury, bill for services, diagnosis, prescription, hospital or provider
records, x-rays, test
results,
or other documentation offered as proof of, or in the absence of, a loss,
injury, or expense.
(3) If it is determined that any person concealed or knowingly failed to
disclose that
which
is required by law to be revealed, knowingly gave or used perjured testimony or
false
evidence,
knowingly made a false statement of fact, participated in the creation or
presentation of
evidence
which he or she knows to be false, or otherwise engaged in conduct in violation
of
subdivision
(1) of this subsection, that person shall be subject in criminal proceedings to
a fine
and/or
penalty not exceeding fifty thousand dollars ($50,000), or double the value of
the fraud,
whichever
is greater, or by imprisonment up to five (5) years in state prison or both.
(4) There shall be a general amnesty until July 1, 1992 for any person
receiving
compensation
under chapters 29 -- 38 of this title, to the extent compensation has been
voluntarily
reduced
or relinquished by the employee prior to that date.
(c) The director of labor and training shall establish a form, in consultation
with the
attorney
general, to be sent to all workers who are presently receiving benefits and
those for
whom
first reports of injury are filed in the future which shall give the employee
notice that the
endorsement
of a benefit check sent pursuant to section 28-35-39 is the employee's
affirmation
that he
or she is qualified to receive benefits under the Workers' Compensation Act.
The insurers
and
self-insured employers are directed to send the form to all workers receiving
benefits.
(d) Any employer, or in any case where the employer is a corporation, the
president, vice
president,
secretary, and treasurer of the corporation, or in any case where the
employer is a
limited
liability company, the managers, or in any case where the employer is a general
partnership,
a limited partnership or a limited liability partnership, the partners, that is found to
have
violated this section or section 28-36-15, shall be guilty of a felony for
failure to secure and
maintain
compensation, and upon conviction, shall be subject to imprisonment of up to
two (2)
years,
a fine not exceeding ten thousand dollars ($10,000), or both. In any case where
the
employer
is a corporation, the president, vice president, secretary, and treasurer of
the
corporation,
shall be severally liable for the fine or subject to imprisonment. ,or
both. In any case
where
the employer is a limited liability company, the managers shall be severally
liable for the
fine
or subject to imprisonment, or both. In any case where the employer is a
partnership, or a
general
partnership, or a limited partnership or a limited liability partnership, the
partners shall be
severally
liable for the fine or subject to imprisonment, or both.
28-33-18.3.
Continuation of benefits -- Partial incapacity. -- (a) (1) For all
injuries
occurring
on or after September 1, 1990, in those cases where the employee has received a
notice
of
intention to terminate partial incapacity benefits pursuant to section
28-33-18, the employee or
his
or her duly authorized representative may file with the workers' compensation
court a petition
for
continuation of benefits on forms prescribed by the workers' compensation
court. In any
proceeding
before the workers' compensation court on a petition for continuation of
partial
incapacity
benefits, where the employee demonstrates by a fair preponderance of the
evidence
that
his or her partial incapacity poses a material hindrance to obtaining
employment suitable to
his
or her limitation, partial incapacity benefits shall continue. For injuries on
and after July 1,
2001 2003,
"material hindrance" is defined to include only compensable injuries
causing a greater
than
sixty-five percent (65%) degree of functional impairment and/or disability. Any
period of
time
for which the employee has received benefits for total incapacity shall not be
included in the
calculation
of the three hundred and twelve (312) week period.
(2) The provisions of this subsection apply to all injuries from Sept. 1, 1990,
to July 1,
2001 2003.
(b) (1) Where any employee's incapacity is partial and has extended for more
than three
hundred
and twelve (312) weeks and the employee has proved an entitlement to continued
benefits
under subsection (a) of this section, payments made to these incapacitated
employees
shall
be increased annually on the tenth (10th) day of May thereafter so long as the
employee
remains
incapacitated. The increase shall be by an amount equal to the total percentage
increase
in
the annual consumer price index, United States city average for urban wage
earners and
clerical
workers, as formulated and computed by the bureau of labor statistics of the
United States
Department
of Labor for the period of March 1 to February 28 each year.
(2) "Index" as used in this section refers to the consumer price
index, United States city
average
for urban wage earners and clerical workers, as that index was formulated and
computed
by
the Bureau of Labor Statistics of the United States Department of Labor.
(3) The annual increase shall be based upon the percentage increase, if any, in
the
consumer
price index for the month of a given year, over the index for February, the
previous
year.
Thereafter, increases shall be made on May 10 annually, based upon the
percentage
increase,
if any, in the consumer price index for the period of March 1 to February 28.
(4) The computations in this section shall be made by the director of labor and
training
and
promulgated to insurers and employers making payments required by this section.
Increases
shall
be paid by insurers and employers without further order of the court. If
payment payable
under
this section is not mailed within fourteen (14) days after the employer or
insurer has been
notified
by publication in a newspaper of general circulation in the state it becomes
due, there
shall
be added to the unpaid payment an amount equal to twenty percent (20%) of it,
to be paid at
the
same time as but in addition to the payment.
(5) This section applies only to payment of weekly indemnity benefits to
employees as
described
in subdivision (1) of this subsection, and does not apply to specific
compensation
payments
for loss of use or disfigurement or payment of dependency benefits or any other
benefits
payable under the Workers' Compensation Act.
(c) No petitions for commutation shall be allowed or entertained in those cases
where an
employee
is receiving benefits pursuant to this section.
28-33-25.
Settlement for lump sum or structured-type payment. -- (a) (1) In case
payments
have continued for not less than six (6) months, the parties may petition the
workers'
compensation
court for an order approving a settlement of the future liability for a lump
sum or
structured-type
periodic payment over a period of time.
(2) (i) In considering the petition, a judge shall give due weight to the fact
that it is the
policy
of this chapter that compensation be paid weekly.
(ii) The petition shall be considered by a judge of the court and may be
granted where it
is
shown to the satisfaction of the court that the payment of a lump sum or
structured-type
payment
in lieu of future weekly payments will be in the best interest of all parties
including the
employee,
employer, insurance carrier, and where applicable, the workers' compensation
administrative
fund and the center for Medicare and Medicaid services (CMS) as their
interests
may
appear.
Any proposed settlement that exceeds one hundred four (104) weeks of
compensation
for partial incapacity may be rejected by the chief judge in his or her
discretion.
The
employee shall be entitled to a finding amortizing the net settlement over his
or her life
expectancy.
(iii) In determining whether the settlement is in the best interest of all
parties, the judge
may
refer the employee for a rehabilitation evaluation pursuant to the provisions
of section 28-33-
41.
(3) Upon payment, the employer and insurer shall be entitled to a duly executed
release,
which
fully and finally absolves and discharges the employer and insurer from any and
all
liability
arising out of the injury.
(b) The provisions of this section shall be strictly construed and all hearings
for
commutation
shall be conducted in open session.
(c) No case may be settled to a lump sum or structured-type periodic payment
while the
Rhode
Island temporary disability insurance fund and/or the department of social and
rehabilitative
services has a claim for payments made under chapter 41 of this title unless
agreement
is made to pay any claim from the lump sum or structured-type periodic
payments.
(d) Attorneys' fees shall be fixed by the court, but in no event shall any
attorney's fee for
representing
an employee in connection with a petition brought pursuant to this section
exceed a
sum
equal to fifteen twenty percent (15%) (20%) of the
lump sum or fifteen twenty percent (15%)
(20%) of the structured-type
periodic payment reduced to present day value.
(e) No case shall be settled for a lump sum or structured-type periodic payment
unless it
is
placed upon the record in open session, that the employer, if insured, has been
advised by the
insurer
or its agent of the potential effect of the settlement on its workers'
compensation premium,
and
has the opportunity to appear and state its disapproval of the settlement.
(f) Settlements must be paid within fourteen (14) days of entry of an order to
pay or the
date(s)
upon which payment(s) is/are due pursuant to a court order, and a penalty of
one hundred
dollars
($100) shall be assessed for every day payment is delinquent.
28-33-25.1.
Settlement of disputed cases. -- Notwithstanding the provisions of
sections
28-33-25
and 28-33-26, in cases where liability of the employer for payment of workers'
compensation
benefits has not been finally established, the parties may submit a settlement
proposal
to the workers' compensation court for approval. If, upon consideration, a
judge of the
workers'
compensation court deems the settlement proposal to be in the best interest of
the
parties,
including the employee, employer, insurance carrier, and where applicable
the center for
Medicare
and Medicaid services (CMS) as their interests may apply, the judge may approve
the
settlement.
Payment by the employer or insurer shall not be deemed to be the payment of
workers'
compensation benefits, but shall be considered a compromise payment of a
disputed
claim.
The settlement and payment pursuant to it shall not be subject to liens set
forth in section
28-33-27(b).
Upon payment, the employer and insurer shall be entitled to a duly executed
release
that
fully and finally absolves and discharges the employer and insurer from any and
all liability
arising
out of the claimed injury.
SECTION
4. Section 28-36-15 of the General Laws in Chapter 28-36 entitled
"Workers'
Compensation
- Insurance" is hereby amended to read as follows:
28-36-15.
Penalty for failure to secure compensation -- Personal liability of
corporate
officers. --
(a) Any employer required to secure the payment of compensation under
chapters
29 -- 38 of this title who knowingly fails to secure that compensation shall be
guilty of a
felony
and shall be subject to imprisonment for up to two (2) years. In addition to
the foregoing,
the
employer shall be subject to a civil penalty punished by a fine of not less
than five hundred
dollars
($500) and not more than one thousand dollars ($1,000) for each day of
noncompliance
with the
requirements of this title. The director shall institute any and all reasonable
measures to
comprehensively
monitor, investigate, and otherwise discover all employer noncompliance with
this
section and shall establish rules and regulations governing these measures.
Each day shall
constitute
a separate and distinct offense for calculation of the penalty. Where that
employer is a
corporation
or a limited liability company or general or limited partnership, the
president, vice
president,
secretary, and treasurer of the corporation, or member or manager of a
limited liability
company
or general or limited partner in a registered limited liability partnership shall be also
severally
liable for the fine, penalty or imprisonment as provided in this section for
the failure of
that
corporation to secure the payment of compensation. The president, vice
president, secretary,
and
treasurer or member or manager or general or limited partner shall be
severally personally
liable,
jointly with the corporation or company or partnership, for any
compensation or other
benefit
which may accrue under those chapters in respect to any injury which may occur
to any
employee
of that corporation while it fails to secure the payment of compensation as
required by
those
chapters. All criminal actions for any violation of this section shall be
prosecuted by the
attorney
general. The attorney general shall prosecute actions to enforce the payment of
penalties
and
fines at the request of the director. The workers' compensation court shall
have jurisdiction
over
all civil actions filed pursuant to this section.
(b) (1) As soon as practicable after the director receives notice of
noncompliance under
this
section, the director shall determine whether cause exists for the imposition
of a civil penalty.
Unless
the director determines that the noncompliance was unintentional or the result
of a clerical
error
and subject to the administrative proceedings under subsection (c) of this
section, the
director
shall commence an action in the workers' compensation court to assess a civil
penalty
against
the employer as set forth in subsection (a) of this section and shall refer the
matter to the
attorney
general for prosecution of criminal charges.
(2) The director shall bring a civil action in the workers' compensation court
to collect all
payments
and penalties ordered and not paid. All civil actions for any violations of
this chapter or
of
any of the rules or regulations promulgated by the director, or for the collection
of payments in
accordance
with section 28-37-13, 28-33-17.3(a)(2) or 28-33-17.3(a)(3) or civil penalties
under
this
chapter, shall be prosecuted by any qualified member of the Rhode Island bar
whom the
director
may designate, in the name of the director, and the director is exempt from
giving surety
for
costs in any proceedings.
(c) In the case of unintentional noncompliance or noncompliance resulting from
clerical
error
where the uninsured period is less than one year from the date of discovery and
there were
no
employees injured during the uninsured period and the employer has not been
subject to any
other
findings of noncompliance with these chapters, the director shall assess an
administrative
penalty
of not less than the estimated annual workers' compensation insurance premium
for that
employer
and not more than triple that amount. Any party has the right to appeal the
orders of the
director.
Such appeal shall be to the workers' compensation court in the first instance
and
thereafter
from the workers' compensation court to the Rhode Island supreme court in
accordance
with
section 28-35-30.
(d) The director shall collect all payments under this chapter under the rules
and
regulations
that may be set forth by the director. All fines collected pursuant to this
section shall
be
deposited to a restricted receipt account to be administered by the director of
the department of
labor
and training in his or her sole discretion to carry out chapters 29 -- 38 of
this title.
(e) (1) In that the operation of a commercial enterprise without the required
workers'
compensation
insurance is a crime and creates a clear and present danger of irreparable harm
to
employees
who are injured while the employer is uninsured, the director shall suspend the
operation
of the business immediately and until workers' compensation and employers'
liability
insurance
is secured consistent with these chapters. The director shall lift the
suspension upon
receipt
of satisfactory proof of insurance and evidence sufficient to satisfy the
director that the
employer
is in full compliance with these chapters. Any party has the right to appeal
the
suspension
to the workers' compensation court where the matter shall proceed pursuant to
the
workers'
compensation court rules of procedure.
(2) In the event that the employer shall fail to comply with the director's
order of
suspension,
the director may apply immediately to the workers' compensation court for an
order
directing
the employer to comply with the director's prior orders.
(3) Actions filed with the workers' compensation court pursuant to this section
shall not
be
subject to a pretrial conference in accordance with section 28-35-20 but shall be
assigned
consistent
with the workers' compensation court rules of procedure.
(f) Interest shall accrue on unpaid penalties during the pendency of any appeal
at the rate
per
annum provided in section 9-21-10.
SECTION
5. Section 42-35-18 of the General Laws in Chapter 42-35 entitled
"Administrative
Procedures" is hereby amended to read as follows:
42-35-18.
Effective date of chapter -- Scope of application and exemptions. --
(a) This
chapter
shall take effect upon January 1, 1964, and thereupon all acts and parts of
acts
inconsistent
herewith shall stand repealed, provided, however, that except as to proceedings
pending
on June 30, 1963, this chapter shall apply to all agencies and agency
proceedings not
expressly
exempted.
(b) None of the provisions of this chapter shall apply to the following
sections and
chapters:
(1) Section 16-32-10 (University of Rhode Island);
(2) Chapter 41 of title 16 (New England Higher Education Compact);
(3) Section 16-33-6 (Rhode Island College);
(4) Chapter 16 of title 23 (Health Facilities Construction Act);
(5) Chapter 8 of title 20 (Atlantic States Marine Fisheries Compact);
(6) Chapter 29 of title 28 (Workers' Compensation -- General Provisions);
(7) Chapter 30 of title 28 (Workers' Compensation Commission);
(8) Chapter 31 of title 28 (Workers' Compensation -- State and Municipal
Employees);
(9) Chapter 32 of title 28 (Workers' Compensation -- Report of Injuries);
(10) Chapter 33 of title 28 (Workers' Compensation -- Benefits);
(11) Chapter 34 of title 28 (Workers' Compensation -- Occupational
Diseases);
(12) Chapter 36 of title 28 (Workers' Compensation -- Insurance);
(13) Chapter 35 of title 28 (Workers' Compensation -- Procedure);
(14) Chapter 37 of title 28 (Workers' Compensation -- Second Injury
Indemnity Fund);
(15) Chapter 38 of title 28 (Dr. John E. Donley Rehabilitation Center);
(16) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387,
section 1.]
(17) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387,
section 1.]
(18) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387,
section 1.]
(19) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387,
section 1.]
(20) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387,
section 1.]
(21) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387,
section 1.]
(22) Chapter 7 of title 17 (State Board of Elections);
(23) Chapter 16 of title 8 (Judicial Tenure and Discipline);
(24) Chapter 61 of title 42 (State Lottery);
(25) Chapter 59 of title 16 (Board of Governors for Higher Education);
(26) Chapter 60 of title 16 (Board of Regents for Elementary and Secondary
Education);
(27) Chapter 24.4 of title 45 (Special Development Districts);
(28) Chapter 12 of title 35 (The University of Rhode Island Research Corporation).
(c) The provisions of sections 42-35-9, 42-35-10, 42-35-11, 42-35-12 and
42-35-13 shall
not
apply to:
(1) Any and all acts, decisions, findings, or determinations by the board of
review of the
department
of labor and training or the director of the department of labor and training
or his, her,
its
or their duly authorized agents and to any and all procedures or hearings
before and by the
director
or board of review of the department of labor and training or his or her agents
under the
provisions
of chapters 39 -- 44 of title 28.
(2) Section 28-5-17 (Conciliation of charges of unlawful practices).
(3) Chapter 8 of title 13 (Parole).
(4) Any and all acts, decisions, findings or determinations by the
administrator of the
division
of motor vehicles or his or her duly authorized agent and to any and all
procedures or
hearings
before and by said administrator or his or her said agent under the provisions
of chapters
10,
11, 31 to 33, inclusive, of title 31.
(5) Procedures of the board of examiners of hoisting engineers under chapter 26
of title
28.
(6)
Any and all acts, decisions, findings, or determinations made under authority
from the
provisions
of chapters 29 -- 38 of title 28, concerning workers' compensation
administration,
procedure
and benefits.
SECTION
6. This act shall take effect upon passage.
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LC02329/SUB
A
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